Stock Market Summary Thursday July 12th 2012

Posted by Stephen Sutherland on Thu, Jul 12, 2012 @ 11:54 AM
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Yesterday's market action was positive.

The Nasdaq Composite dropped 0.5% in trade below average indicating mild institutional selling (Point A). It was the fourth down day in a row which normally raises a flag, however notice that the selling over the last four days has been made in extremely tame volume (Point B), indicating a reluctance to sell from the big players.

With just one hour and twenty minutes to go, the US tech index hit 2867 (Point C) prompting institutional investors to buy. The buying helped the Nasdaq close above its all important 50 day moving average for a second day in a row (Point D).

India, Russia and global materials all outperformed.

Leading stocks action was neutral.

I said yesterday that I'd be very surprised if the market went down any more and even though it did drop 0.5%, my opinion remains that it is more likely to head higher than lower.

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Topics: Stock Market Summary